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ABC Company is the distributor of a product that sells for $50 per unit and...

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Accounting

ABC Company is the distributor of a product that sells for $50 per unit and has a CM ratio of 40%.
The company's fixed cost are $200,000 per year.
The company plans to sell 16,000 units of product this year.
Required (Show all calculations/working):
A) What are the variable expenses per unit?
B) What is the breakeven point in unit sales and dollar sales?
C) What amount of unit sales and dollar sales are required to earn a profit of $50,000 per year?
D) If the company sells 16,000 units of product this year, what is the expected profit?
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